Compound Interest Practice Test 6

Question : 1 of 9

Marks: +1, -0

Mr Singh borrowed Rs 18,000 at 10% p.a. compound interest from his friend. He repaid Rs 8,000 at the end of the first year. Find the amount he has to pay at the end of the second year if he has to discharge his loan.

Rs 11,800
Rs 12,980
Rs 13,000
None of these
Cannot be determined

Validate

Solution:

Total amount to be paid at the end of the firstyear

= 1,800( 1+10/ 100)

18,000×11/ 10

= Rs 19,800
Balance with Mr Singh at the end of the second year = 19,800 - 8,000 = 11,800
Total amount to be paid at the end of the end year

=11,800(1+10/100)

=11,800 ×11/10

= Rs 12,980

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